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Ground shipping was once synonymous with “slow” shipping, but big-name companies such as Amazon have shifted this standard. In the past, to have things delivered with 2-day shipping, you would have to use “expedited” air shipping methods, which can be expensive. With the rise in e-commerce and companies like Amazon promising 2-day shipping as a standard, on-demand logistics have had to rise to the challenge.
Today, major shipping carriers and 3PL (third-party logistics) providers have the necessary infrastructure in place to offer 2-day ground shipping for affordable rates. E-commerce businesses can take advantage of cost-efficient ground shipping that meets customer expectations with fast delivery.
Ground Shipping Explained
The most common and standard form of domestic shipping, ground shipping uses the roads and rails to ship things via trucks, vans, cars, and trains. Ground shipping is the most affordable form of shipping, which can help you to lower your overall shipping costs. This allows your business to more effectively compete with other and bigger online retailers that often offer free shipping.
Comparison of Major Ground Shipping Carriers
There are four major ground shipping carriers in the United States:
- USPS
- UPS
- FedEx
- DHL
The following table compares these major ground shipping carriers:
Carrier | Ground Shipping Speed | Coverage | Rates |
USPS | 2–8 business days with USPS Retail Ground | All U.S. zip codes and Puerto Rico | Starting at $8.50 in a post office |
UPS | 1–5 business days with UPS Ground | All U.S. zip codes and Puerto Rico | Starting at $8.76 |
FedEx | 1–5 business days within the contiguous U.S. with FedEx Ground | All 50 states to all U.S. business addresses, between the U.S. and Canada and within Canada using FedEx International Ground | Starting at $8.23 |
DHL | 3–8 business days with DHL Domestic Shipping | Within the United States, Canada, and Mexico | Variable rates |
These major ground shipping carriers also partner with regional carriers to manage short-haul deliveries and speed up the ground delivery shipping times.
Why Choose Ground Shipping?
Customers expect fast and affordable shipping. Some of the main reasons for online cart abandonment include expensive shipping costs or slow delivery times. While ground shipping often has the misconception of being slow, which it can be if you are shipping a far distance, it can also be efficient when moving across closer distances.
Shipping carriers use zones to define distance, with Zone 1 being the closest. As the zone numbers increase, so does the shipping distance.
Fulfillment centers that are within the same zone as the delivery address can be shipped the fastest and for the lowest shipping costs. As distance and zones increase, so do costs. Shipping times also get stretched out.
It can be beneficial to distribute your inventory among several fulfillment centers, which is one of the services offered by a 3PL provider. This can allow you to have merchandise closer to your customers. You can then leverage more affordable ground shipping rates and faster shipping speeds.
Optimizing Ground Shipping for E-Commerce
Your shipping strategy will need to take into account shipping costs. The goal is to minimize these costs while still providing the fast delivery service your customers expect. Lower shipping costs can offer you higher profit margins.
The impact of shipping across your business is substantial. Efficient shipping can improve customer satisfaction, which can also impact your bottom line by helping to drive sales, reduce cart abandonment, and maintain your current customer base.
When creating your shipping strategy, it is important to consider your options. This begins with choosing a shipping carrier. Different carriers offer variable services and options. You have to consider what is most important to your business model, where your products are located in relation to your customer base, and your budget.
For fast and efficient delivery — in as little as 1 to 5 business days to states with a continuous border — FedEx Ground can ship packages up to 150 pounds, 108 inches in length, and 165 in length plus girth with competitive rates. USPS Retail Ground shipping offers some of the lowest rates with a little bit longer shipping times of 2 to 8 business days. UPS Ground offers Saturday deliveries, so you can offer weekend deliveries for your customers.
Each carrier will offer different benefits and services. Weigh your options to determine the best solution for your ground shipping needs.
Partnering With a 3PL
A 3PL provider can take care of your order fulfillment, inventory management, and shipping logistics. By partnering with a 3PL provider, you can get expert help with some of the trickiest processes of running an e-commerce business.
Distributed Inventory
3PL providers use a distributed fulfillment network that can selectively spread your inventory out among various fulfillment centers. This practice will use order data to ensure that products are stored in fulfillment centers closest to customers. By optimizing inventory allocation, you can enable affordable 2-day shipping.
Discount Shipping
A 3PL provider works closely with ground shipping carriers to obtain the best rates for you. Since they often manage many other e-commerce businesses, 3PL providers are able to get bulk and discounted rates that you might not be big enough to qualify for on your own.
Outsourcing fulfillment to a 3PL provider can save you time and even money, leaving the heavy lifting to the experts. By partnering with a 3PL provider, you can leverage affordable and fast ground shipping while delegating some of the more time-consuming and difficult logistical processes of your e-commerce business.
A 3PL provider already has the infrastructure in place to manage your ground shipping needs in a cost-effective and efficient manner. The result is a greatly simplified process for you.
References
Mail and Shipping Services. (2022). USPS.
Shipping Inside the United States? (2022). United Parcel Service of America, Inc.
FedEx Ground Shipping. (2022). FedEx.
DHL eCommerce Solutions. (2022). Deutsche Post DHL Group.